Mayuresh Joshi, VP Institution of Angel Broking told CNBC-TV18, "If one looks at the GMR Infrastructure Q1 numbers that the company posted, the top-line growth almost came at Rs 2,600 crore. However it is a highly leverage company with its debt at almost four times its equity. What has subsequently happened is that its interest cost actually risen around 27 percent to Rs 610 crore. I think the power and infrastructure side of business is not doing so well and that is actually dragging the operating profits and thereby the operating margins for this company. The power projects are not doing well and that is creating a drag."

"Forex losses, because of the depreciating rupee, is also creating a havoc on the balance sheet. It would be advisable to possibly move out of the stock on rallies. I think the targets of Rs 56 looks a bit difficult over the next one to two year considering the kind of position it is into. On rallies one can sell into GMR infra and possible look at some stocks like Sun Pharmaceutical Industries from the pharma space or something like a KPIT Cummins from the midcap IT space," he said.